2023 (7) TMI 737

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.... heard together and are disposed of by this common order for the sake of convenience and brevity. 2. Briefly stated, the facts of the case are that the assessee is a graduate in Mechanical Engineering and is engaged in technical and marketing consultancy operation since 1982. He has been carrying out the said consultancy from his residential premises located at Kalkaji, New Delhi. 3. Pursuant to some case in Hyderabad, a survey action was taken at the premises of the assessee on 23.04.2012. In his statement, the assessee claimed that he has filed his returns declaring income at 8% of gross receipts on presumptive basis. However, he could not produce proof of filing of his returns and when asked to produce the books of account, expendi....

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....n u/s 148 of the Act and initiated reassessment proceedings. There is no error or infirmity in this action of the Assessing Officer. This ground taken in A.Ys 2009-10 and 2010- 11 is dismissed. 10. Pursuant to the notice, the assessee declared income of Rs. 3.04 lakhs in A.Y 2009-10 and Rs. 2.12 lakhs in A.Y 2010-11. 11. The assessee, before us, submitted that income has been returned on presumptive basis which is @ 8% of the gross receipts for the impugned years. 12. We find that in the impugned years i.e. 2009-10 and 2010-11, gross receipts as per Form 26AS is Rs. 40 lakhs and Rs. 70,73,100/- respectively. The bench asked the assessee to reconcile the receipts shown by him in his return of income and receipts as per Form 26AS. Th....

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....hat the assessee has receipts of Rs. 88.76 lakhs, we are of the considered opinion that the Assessing Officer has sufficient cause for assuming jurisdiction u/s 148 of the Act and initiating reassessment proceedings. Challenge to the reopening of the assessment is dismissed. 20. On merits, we are of the considered view that the entire receipts shown in Form No. 26AS cannot be income of the assessee since in A.Y 2009-10 and 2010-11, we have accepted the net profit rate of 8% as applied by the assessee to his gross receipts. We direct the Assessing Officer to assess the gross receipts as per Form 26AS at Rs. 88.76 lakhs at 8% which comes to Rs. 7,10,080/-. The Assessing Officer is further directed to allow deduction under Chapter VIA for w....